How to close the gender pay gap in the technology sector

GUEST BLOG: In this contributed blog post, Sheila Flavell, chief operating officer, at FDM Group highlights some of the ways companies can work towards closing the tech sector’s gender pay gap. 

The gender pay gap in tech is a recurring issue. At 16% it’s higher than the UK national average and all other industries.

Tech organisations and government bodies must do more to address the factors that widen the existing gender pay gap to build fair and equal workplaces.

Addressing pre-existing Bias and Barriers

A significant barrier to closing the pay gap is pre-existing gender bias in the workplace, highlighted by recent government findings. These studies suggest that women’s career progression is often hindered by biases surrounding pay and promotions, compounded by tensions between work and family life.

This lack of support from businesses can delay female employees’ personal and professional growth. Tech companies must acknowledge these biases as obstacles to fair and equal pay between male and female workers.

Additionally, unconscious bias significantly impacts a woman’s whole career progress, influencing recruitment processes, salary differentials, and advancement opportunities. One study found that in a pool of equal-performing candidates, men were 1.5 times more likely to be hired than women.

Gender stereotypes lead to biases that disadvantage women, contributing to their underrepresentation in senior positions. Research reveals that women, especially women of colour, face slower career progression, with only 32% holding leadership positions, exacerbating the gender pay gap.

The impact of the Motherhood Penalty

Balancing career aspirations with caregiving duties already puts a lot of pressure on women, further compounded by limited flexible work arrangements upon their return to work.

Despite increasing pressure on CEOs to enhance diversity, achieving gender pay equality in OECD countries remains a distant goal, with PwC’s 2023 Women in Work Index suggesting a 50-year timeline.

Recent data from the UK reveals a worsening gap, with mothers earning only 72% of fathers’ hourly salaries. This disparity, known as the ‘motherhood penalty,’ significantly impacts gender equality in the workforce.

Mothers often face salary reductions and reduced job prospects due to career breaks for childbirth. To combat this, businesses must take proactive steps to address the motherhood penalty and narrow the gender pay gap, ensuring equal pay for all.

Promoting flexible working policies

Implementing flexible working policies in tech organisations not only creates an inclusive workplace, but also plays a pivotal role in narrowing the gender pay gap.

Studies indicate that approximately one-fifth of women attribute their ability to sustain their careers to flexibility in the workplace. Consequently, policies such as ‘work-from-anywhere’ enable women to effectively manage family obligations while excelling in their professional roles.

Although it’s not just about flexibility of location, but also flexibility of hours. The hours for pickup and drop-off for childcare fall between the traditional 9 to 5 workday, so providing flexibility of when mothers are working can remove the stress of rushing to pick up children or arranging for friends and family to cover.

By embracing these policies, tech companies advocate for a rightful work environment, therefore improving efforts to address the gender pay disparity in the industry. Moreover, such measures facilitate the attraction and retention of top talent, particularly individuals re-entering the workforce following a career hiatus.

On top of this, the rise of programmes benefiting women, such as FDM’s Returners Programme, can actively support women returning to work after career breaks, creating a pathway for them to excel in leadership roles.

Publishing a gender pay gap report is essential

Businesses with over 250 employees are mandated by law to annually disclose their gender pay gap report. This aims to foster transparency and accountability within each organisation.

This report serves as a crucial tool for employers to identify gender pay disparities and proactively implement measures to promote equal pay. Moreover, it serves as a legal catalyst for policy development and stimulates informed discussions aimed at narrowing the gender pay gap.

Ensuring accurate and accessible data collection is essential to reaching a broader audience and enhancing engagement with the report’s findings. Addressing the gender pay gap requires a multifaceted approach, encompassing policy reforms, innovative initiatives, and a paradigm shift in mindset.